During the session on Tuesday, there aren't many economic announcements to move the market, and we believe that as a result it will be very technically driven during the session. With this, we take a look directly at the charts.
USD/JPY ready to make a move?
The USD/JPY might be one of the exceptions in the financial markets today as the Bank of Japan releases its monetary policy statement. If they suggest more quantitative easing, you can expect this pair to go much higher. The 121 level looks to be the target now, but ultimately if we can break above there we would be looking at the 122 level, followed by the 125 level. Pullbacks should continue to find plenty of support down to the 119 level offering call buying opportunities below.
EUR/USD to continue offering opportunity
The EUR/USD pair continues to try to rally, but finds the 1.13 level be far too resistive to continue to go any higher. Because of this, we feel as if the market offers put buying opportunities every time we rally. We believe these are short-term moves, so we would be very quick to take profits at this point in time. A move above the 1.13 level would be a call buying opportunity as it would represent an increase in momentum.
DAX shows strength on Monday
The DAX shot higher during the session on Monday, breaking above the €9800 level. Because of this, we feel that the market is ready to continue going higher, and we are call buyers and aiming for the €10,000 level now. We believe pullbacks represent value.
